The U.S. Supreme Court has declined to review a decision in which a taxpayer who filed for Chapter 7 bankruptcy sought to discharge his tax liabilities. According to the Bankruptcy Code, tax debts are dischargeable only if a debtor has filed a “return.” This taxpayer, however, didn’t file timely IRS returns for any of the years for which he sought relief. The IRS responded by issuing deficiency notices. The Ninth Circuit Court of Appeals acknowledged that the law’s definition of “return” is vague but said other remedies had been available. Ultimately, the court found that because the taxpayer didn’t file returns until after the IRS issued notices, his debt wasn’t dischargeable. Contact the Cg Team with questions.© 2024